If I were to summarize my quest, it would revolve around freedom – freedom from bills, freedom from call, freedom from perpetual demands. For me, freedom equals happiness.
But how do you attain such freedom? It’s a subjective query with multifaceted answers. However, establishing a solid financial foundation is likely the most effective starting point.
Financial literacy remains elusive, especially within the medical field. I’m uncertain about other educational programs, but during medical school, I received no guidance on managing finances. I did, however, benefit from one attending physician’s lecture on the subject during residency, which proved to be invaluable. I don’t recall how I stumbled upon it, but during medical school, I read “The White Coat Investor” by Dr. Dahle. It was a concise, straightforward read that unveiled the intricacies of finances. I came from a modest background and relied on student loans to fund both my undergraduate and medical education. Tack on a private loan for away rotations during medical school and my debt amounted to $300,000. During medical school, addressing debt and considering investments seemed impossible. However, this changed when I became a resident.
Once residency commenced, I promptly opened a Roth IRA and annually maximized contributions. I initiated loan payments, though these were income-adjusted and unfortunately fell short of covering the accruing interest. I managed to repay the private loan swiftly due to its higher interest rate. Concurrently, I established an emergency fund, ample enough to sustain six months of living expenses in case of job loss. Additionally, through prudent budgeting, I saved up for an engagement ring. My quality of life during residency was comfortable – far from subsisting on the proverbial “rice and beans.”
Progressing through residency, I embarked on job hunting during my PGY3 year. Consulting multiple mentors, I gleaned insights on what salary, signing bonus, and loan forgiveness I should negotiate for. I secured a job offer, which encompassed a competitive salary, signing bonus, and loan forgiveness. I signed with my employer toward the conclusion of my PGY4 year and promptly received the signing bonus. A fraction of this windfall was used to pay off my car, while the remaining balance was put in savings.
Now, nearing two years into my career, I’ve nearly eradicated all of my loans, diversified with several supplementary retirement accounts, financed my own wedding (with substantial support from my spouse), and purchased a home. My net worth has experienced a remarkable shift from -$300,000 to +$170,000. While I’m not at the pinnacle of financial freedom, I firmly believe I’m journeying along the right trajectory. As this blog evolves, I eagerly anticipate delving deeper into these discussions.